Humber College Exam 4: Invigilated Theory Sample Questions:

1. A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?

A) The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.
B) The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.
C) The tenant can have the deposit back without signing a mutual release as it is not their fault.
D) The landlord and tenant may agree to split the deposit.

2. When a property assessment of a new commercial property has not been completed prior to its resale, what should a salesperson do to protect the buyer?

A) Include the current tax assessment as a schedule of the agreement.
B) Ensure the offer contains a clause allowing for compensation for adjustments to the property taxes.
C) Get a letter from the seller to guarantee a maximum amount of realty tax payment in the coming year.
D) Ensure the offer contains a clause requiring the seller and the buyer to share the property taxes to be assessed for the next three years.

3. A salesperson is preparing to list an industrial building and wants to assess the availability and size of utilities, as these factors may prohibit a change in use for the potential buyer. Which of the following is correct?

A) The seller may have up-to-date documentation about the utilities but, in some situations, a third-party professional assessment is still needed.
B) If the information on the building's utilities is not available, the salesperson can determine it by finding out the specifications of the utilities of the neighbors.
C) If the information on the subject building's utilities is available, then a potential buyer will not put a condition in the offer.
D) The salesperson should conduct a visual inspection of the building to determine the specifications of the utilities.

4. A salesperson is searching for properties on behalf of their retail buyer client for their designer eyewear and optical store. The buyer discusses their storage and product display needs with the salesperson. Which of the following is NOT a factor the buyer should consider regarding the product display and storage space of potential properties?

A) The salesperson should advise the buyer to consider the space they will need to allot for storage versus customer-facing product.
B) The salesperson should advise the buyer to consider the size of their products.
C) The salesperson should advise the buyer to consider the price of their products.
D) The salesperson should advise the buyer to consider their business's predicted monthly inventory.

5. Utility requirements are different for retail, office, and industrial properties, and a salesperson should understand the utility needs of each client. Which of the following items is NOT required bya typical occupant of a retail space?

A) A high voltage and ampere supply
B) Sufficient lighting
C) A proper ventilation system
D) A stable internet connection

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